§ 278s. Manufacturing USA

§ 278s. Manufacturing USA

(a) Definitions In this section:

(1) Agency head The term “agency head” means the head of any Executive agency (as defined in section 105 of title 5), other than the Department of Defense.

(2) Regional innovation initiative The term “regional innovation initiative” has the meaning given such term in section 3722(f)(1) of this title.

(b) Establishment of Manufacturing USA Program

(1) In general The Secretary shall establish within the Institute a program to be known as the “Manufacturing United States of America Program” or the “Manufacturing USA Program” (referred to in this section as the “Program”).

(2) Purposes of Program The purposes of the Program are—

(A) to improve the competitiveness of United States manufacturing and to increase the production of goods manufactured predominantly within the United States;

(B) to stimulate United States leadership in advanced manufacturing research, innovation, and technology;

(C) to facilitate the transition of innovative technologies into scalable, cost-effective, and high-performing manufacturing capabilities;

(D) to facilitate access by manufacturing enterprises to capital-intensive infrastructure, including high-performance electronics and computing, and the supply chains that enable these technologies;

(E) to accelerate the development of an advanced manufacturing workforce;

(F) to facilitate peer exchange of and the documentation of best practices in addressing advanced manufacturing challenges;

(G) to leverage non-Federal sources of support to promote a stable and sustainable business model without the need for long-term Federal funding;

(H) to create and preserve jobs; and

(I) to contribute to the development of regional innovation initiatives across the United States.

(3) Support The Secretary, acting through the Director, shall carry out the purposes set forth in paragraph (2) by supporting—

(A) the Manufacturing USA Network established under subsection (b); and

(B) the establishment of Manufacturing USA institutes.

(4) Director The Secretary shall carry out the Program through the Director.

(c) Establishment of Manufacturing USA Network

(1) In general As part of the Program, the Secretary shall establish a network of Manufacturing USA institutes.

(2) Designation The network established under paragraph (1) shall be known as the “Manufacturing United States of America Network” or the “Manufacturing USA Network” (referred to in this section as the “Network”).

(d) Manufacturing USA institutes

(1) In general For purposes of this section, a Manufacturing USA institute is an institute that—

(A) has been established by a person or group of persons to address challenges in advanced manufacturing and to assist manufacturers in retaining or expanding industrial production and jobs in the United States;

(B) has a predominant focus on a manufacturing process, novel material, enabling technology, supply chain integration methodology, or another relevant aspect of advanced manufacturing, such as nanotechnology applications, advanced ceramics, photonics and optics, composites, biobased and advanced materials, flexible hybrid technologies, tool development for microelectronics, food manufacturing, superconductors, advanced battery technologies, robotics, advanced sensors, quantum information science, supply chain water optimization, aeronautics and advanced materials, and graphene and graphene commercialization;

(C) has the potential—

(i) to improve the competitiveness of United States manufacturing, including key advanced manufacturing technologies such as nanotechnology, advanced ceramics, photonics and optics, composites, biobased and advanced materials, flexible hybrid technologies, tool development for microelectronics, food manufacturing, superconductors, advanced battery technologies, robotics, advanced sensors, quantum information science, supply chain water optimization, aeronautics and advanced materials, and graphene and graphene commercialization;

(ii) to accelerate non-Federal investment in advanced manufacturing production capacity in the United States; or

(iii) to enable the commercial application of new technologies or industry-wide manufacturing processes; and

(D) includes active participation among representatives from multiple industrial entities, research universities, community colleges, and other entities as appropriate, which may include industry-led consortia, career and technical education schools, Federal laboratories, State, local, and Tribal governments, businesses, educational institutions, and nonprofit organizations.

(2) Activities

(A) Required activities For purposes of this section, a Manufacturing USA institute is also an institute that carries out the following:

(i) Research, development, and demonstration projects, including proof-of-concept development and prototyping, to reduce the cost, time, or risk of commercializing new technologies and improvements in existing technologies, processes, products, and research and development of materials to solve precompetitive industrial problems with economic or national security implications.

(ii) Development and implementation of education, training, and workforce recruitment courses, materials, and programs addressing workforce needs through training and education programs at all appropriate education levels, including programs on applied engineering.

(iii) Development of innovative methodologies and practices for supply chain integration and introduction of new technologies into supply chains, as appropriate.

(iv) Outreach and engagement with small and medium-sized manufacturing enterprises, including women, minority, and veteran owned manufacturing enterprises, in addition to large manufacturing enterprises.

(v) Development of roadmaps or leveraging of existing roadmaps with respect to technology areas being pursued by that Manufacturing USA institute that take into account the research and development undertaken at other Manufacturing USA institutes and Federal agencies with respect to such areas.

(B) Permissible activities In addition to the activities set forth under subparagraph (A), a Manufacturing USA institute may carry out such other activities as may be consistent with the purposes set forth under subsection (b)(2).

(3) Additional Manufacturing USA institutes

(A) In general Except as provided in subparagraph (C), the National Additive Manufacturing Innovation Institute and other manufacturing institutes formally recognized as Manufacturing USA institutes pursuant to Federal law or executive actions, or under pending interagency review for such recognition as of December 16, 2014, shall be considered Manufacturing USA institutes for purposes of this section.

(B) Network participation Except as provided in subparagraph (C), an institute that is substantially similar to an institute described by paragraphs (1) and (2) but does not meet every element of such description and does not receive financial assistance under subsection (e) may, upon request of the institute, be recognized as a Manufacturing USA institute by the Secretary for purposes of participation in the Network.

(C) Applicability Effective beginning on December 20, 2019, an institute shall be treated as a Manufacturing USA institute under this section and subject to subsections (b)(2), (d), and (e) in the same manner and to the same extent as such provisions apply to a Manufacturing USA institute described by paragraphs (1) and (2) if such institute—

(i)

(I) is, as of December 20, 2019, considered a Manufacturing USA institute under subparagraph (A) or recognized as a Manufacturing USA institute under subparagraph (B); and

(II) as of December 20, 2019, receives Federal financial assistance under subsection (e) or otherwise consistent with the purposes of this section;

(ii) is under pending agency review for such recognition as of December 20, 2019; or

(iii) is currently funded by the Department of Energy.

(e) Financial assistance to establish and support Manufacturing USA institutes

(1) Financial assistance authorized Under the Program, the Secretary and the Secretary of Energy shall, and every other agency head may, award financial assistance to a person or group of persons to assist the person or group of persons in planning, establishing, or supporting a Manufacturing USA institute.

(2) Period and renewal of awards

(A) Initial periods An award of financial assistance under paragraph (1) shall be awarded for an initial period of not less than 5 years and not more than 7 years.

(B) Renewal of awards

(i) Renewal authorized An award of financial assistance under paragraph (1) may be renewed for additional periods, with each period not to exceed the duration of the initial period of the award, subject to a rigorous merit review.

(ii) Consideration of performance standards In carrying out a rigorous merit review under clause (i) for renewal of an award under such clause for a Manufacturing USA institute, an agency head shall consider the extent to which the institute has made progress in meeting the standards of performance established pursuant to paragraph (5)(C).

(iii) Initial failure to meet performance standards If, pursuant to a rigorous merit review under clause (i) for renewal of an award under such clause for a Manufacturing USA institute, an agency head finds that the institute does not meet the standards for performance established pursuant to paragraph (5)(C), the agency head shall—

(I) notify the institute of any deficiencies in the performance of the institute; and

(II) provide the institute one year to remedy such deficiencies.

(iv) Further failure to meet performance standards If a Manufacturing USA institute fails to remedy a deficiency identified or to show significant improvement in performance during the 1-year period set forth under clause (iii)(II)—

(I) the institute shall not be eligible for 11 So in original. Probably should be followed by “a”. renewed award under clause (i); and

(II) the agency head that conducted the review for renewal shall notify the institute of such ineligibility.

(v) Continuation of existing Manufacturing USA institutes Not withstanding clauses (i) through (iv), a Manufacturing USA institute already in existence or undergoing a renewal process prior to December 1, 2019—

(I) may continue to receive support for the duration of the original funding award beginning on the date of establishment of that institute; and

(II) shall be eligible for renewal of that funding pursuant to clause (i).

(3) Application for financial assistance

(A) In general A person or group of persons seeking financial assistance under paragraph (1) shall submit to an agency head an application therefor at such time, in such manner, and containing such information as the agency head may require.

(B) Requirements An application submitted under subparagraph (A) for an institute shall, at a minimum include the following:

(i) A description of the specific sources and amounts of non-Federal financial support for the institute on the date financial assistance is sought.

(ii) A description of the anticipated sources and amounts of non-Federal financial support during the period for which the institute could be eligible for continued Federal financial assistance under this section.

(4) Selection

(A) Competitive, merit review In awarding financial assistance under paragraph (1), an agency head shall—

(i) use a competitive, merit review process that includes review by a diverse group of individuals with relevant expertise from both the private and public sectors; and

(ii) ensure that the technology focus of a Manufacturing USA institute does not substantially duplicate the technology focus of any other Manufacturing USA institute.

(B) Participation in process

(i) Prohibition on participation by political appointees The review required by subparagraph (A)(i) may not include a review by a group of individuals that includes a political appointee.

(ii) Conflict of interest policies Each agency head shall implement a conflict of interest policy that—

(I) ensures public transparency and accountability in the process used under subparagraph (A)(i); and

(II) requires full disclosure of any real or potential conflicts of interest on the parts of individuals that participate in the process used under subparagraph (A)(i).

(iii) Definition of political appointee For purposes of this subparagraph, the term “political appointee” has the meaning given such term in section 714(h) of title 38.

(C) Considerations In selecting a person or group of persons who submitted an application to an agency head under paragraph (3) for an award of financial assistance under paragraph (1) for a Manufacturing USA institute, the agency head shall consider, at a minimum, the following:

(i) The potential of the Manufacturing USA institute to advance domestic manufacturing and the likelihood of economic impact, including the creation or preservation of jobs, in the predominant focus areas of the institute.

(ii) The commitment of continued financial support, advice, participation, and other contributions from non-Federal sources, to provide leverage and resources to promote a stable and sustainable business model.

(iii) Whether the financial support provided to the Manufacturing USA institute from non-Federal sources exceeds the requested Federal financial assistance.

(iv) How the Manufacturing USA institute will increase the non-Federal investment in advanced manufacturing research in the United States.

(v) How the Manufacturing USA institute will engage with small and medium-sized manufacturing enterprises to improve the capacity of such enterprises to commercialize new processes and technologies and to improve the domestic supply chain.

(vi) How the Manufacturing USA institute will carry out educational and workforce activities that meet industrial needs related to the predominant focus areas of the institute.

(vii) How the Manufacturing USA institute will advance economic competitiveness and generate substantial benefits to the Nation that extend beyond the direct return to participants in the Program.

(viii) Whether the predominant focus of the Manufacturing USA institute is a manufacturing process, novel material, enabling technology, supply chain integration methodology, or other relevant aspect of advanced manufacturing that has not already been commercialized, marketed, distributed, or sold by another entity.

(ix) How the Manufacturing USA institute will strengthen and leverage the industrial, research, entrepreneurship, and other assets of a region.

(x) How the Manufacturing USA institute will encourage the education and training of veterans and individuals with disabilities.

(5) Performance measurement, transparency, and accountability For each award of financial assistance under paragraph (1) by an agency head, the agency head shall—

(A) develop metrics to assess the effectiveness of the activities funded in making progress toward the purposes of the Program set forth under subsection (b)(2), including the effectiveness of Manufacturing USA institutes in advancing technology readiness levels or manufacturing readiness levels;

(B) establish standards for the performance of Manufacturing USA institutes that are based on the metrics developed under subparagraph (A); and

(C) for each Manufacturing USA institute supported by the award, 5 years after the initial award and every 5 years thereafter until Federal financial assistance under this subsection is discontinued, conduct an assessment of the institute to confirm whether the performance of the institute is meeting the standards for performance established under subparagraph (B).

(6) Collaboration In awarding financial assistance under paragraph (1), an agency head, in coordination with the National Program Office, as the agency head considers appropriate, may collaborate with Federal departments and agencies whose missions contribute to or are affected by advanced manufacturing, including, as the agency head considers appropriate, the Department of Agriculture, the Department of Defense, the Department of Education, the Department of Energy, the Department of Labor, the Food and Drug Administration, the National Aeronautics and Space Administration, the National Institutes of Health, and the National Science Foundation.

(7) Matching funds and preferences

(A) In general Except as provided in subparagraph (B), an agency head may not, with respect to a Manufacturing USA institute, award financial assistance under paragraph (1) or renew an award of financial assistance under paragraph (2) unless the agency head determines that non-Federal funding comprises 50 percent or more of the total amount of funding made available for the operation and support of the institute.

(B) Waivers An agency head awarding financial assistance under paragraph (1) with respect to a Manufacturing USA institute may waive the requirements of subparagraph (A) in the case of satellite centers, large capital facilities, equipment purchases, workforce development, or general operations.

(8) Diversity preferences In awarding financial assistance under paragraph (1) for planning or establishing a Manufacturing USA institute, an agency head shall give special consideration to Manufacturing USA institutes that—

(A) contribute to the geographic diversity of the Manufacturing USA Program;

(B) are located in an area with a low per capita income;

(C) are located in an area with a high proportion of socially disadvantaged residents; or

(D) are located in small and rural communities.

(f) Authority to award financial assistance for construction of test beds and specialized facilities

(1) In general The Secretary may, acting through the Director, award financial assistance for the construction of test beds and specialized facilities by Manufacturing USA institutes established or supported under subsection (e) as the Secretary considers appropriate to carry out the purposes of the Program.

(2) Requirements The Secretary shall exercise authority under paragraph (1) in a manner and with requirements consistent with paragraphs (3) through (8) of subsection (e).

(3) Priority The Secretary shall establish preferences in selection criteria for proposals for financial assistance under this subsection from Manufacturing USA institutes that integrate as active members one or more covered entities as described in section 18971 of title 42.

(g) Grant program for public service activities for Manufacturing USA institutes without Federal funding The Secretary may award a grant on a competitive basis to a Manufacturing USA institute that is not receiving financial assistance under subsection (e) to carry out workforce development, outreach to small- and medium-sized manufacturers, and other activities that—

(1) are determined by the Secretary to be in the national interest; and

(2) are unlikely to receive private sector financial support.

(h) Authorization of appropriations